SNB's Jordan: Worse euro crisis may hit Swiss: report

(Reuters) - Big Swiss banks have very little direct exposure to Greece but Switzerland may be affected if a Greek default destabilizes the whole financial system, the Swiss National Bank's vice chairman told a newspaper on Sunday.

In remarks similar to those he made at the SNB's monetary policy review on Thursday and in the SNB's annual Financial Stability Report, Thomas Jordan said a domino effect brought about by a Greek debt restructuring likely would cause further upwards pressure on the Swiss currency.

Battle lines drawn for a eurozone debt war

While Molotov cocktails burn on Athens’ streets, more vitriolic battles yet are blazing over Greece’s debt crisis behind the scenes, as financial markets and eurozone politicians fight their ground .

War has broken out in Greece. But the battleground is not on the streets, where rioters are venting their fury at planned spending cuts and painful social austerity. It’s on stock market floors and in the political corridors from Athens to Berlin and Brussels. The debt-ridden Mediterranean country is fighting for its future while, for the rest of Europe, Greece has become the frontline for the battle to save the euro.

Sarkozy urges European partners to reach compromise fast on euro crisis

PARIS — French President Nicolas Sarkozy on Thursday called on other European Union leaders to stop quarreling about how to help struggling Greece and instead display the unity that has underpinned the euro currency since its creation over a decade ago.

“What we need most today, is unity,” Sarkozy said. “We have to leave the national fights behind us to find our sense of common destiny again.”

Ten points on the Euro crisis

1. The EU leaders are at loggerheads over the issue: should Greece be allowed to do a soft, controlled, partial default on its debts which forces banks and pension funds to lose some of the money they lent to Greece? Germany says yes, the European Central Bank chief Jean-Claude Trichet says no.

2. The question arises because the first Greek bailout, 110bn euros, did not work. Greece now needs another 85bn euros from the EU/IMF, and has to sell at least 30bn euros of assets on top of that because it cannot borrow in the global markets.

French Bank Links to Euro Crisis Add Sovereign Worry, IMF Says

French banks’ exposure to Europe’s sovereign debt crisis has heightened concern about France’s own top-notch AAA credit rating, according to the International Monetary Fund.

Moody’s Investors Service said today in a separate statement that it may cut the credit ratings of BNP Paribas SA, France’s biggest bank, and local rivals Societe Generale SA and Credit Agricole SA because of their investments in Greece.